Question

Advertisements in a daily newspaper Pioneer Homes Pty limited referred to land and house packages on payment of $1000 deposit and $120--$140 weekly repayments. The advertisement did not disclose hat at some time between one and three years after the settlement date, long-term finance would be submitted for the temporary finance, and that repayments could be expected to rise to just above$ 300 per week. Does the advertisement contravene the ACL? If they do, which section and why?

Answer 1

Yes, the advertisement contravenes the ACL as it does not disclose the expected increase in repayments after one to three years.

Step-by-step explanation:

Yes, the advertisement contravenes the Australian Consumer Law (ACL). Section 29(1)(e) of the ACL prohibits businesses from making false or misleading representations in relation to the price of goods or services. In this case, the advertisement did not disclose that the repayments could rise to just above $300 per week after one to three years, which is a significant increase from the initial $120-$140 weekly repayments. By not disclosing this information, the advertisement is likely to mislead consumers and therefore violate the ACL.